Bloomberg: Crypto Not Really Comparable To Traditional Asset Classes, Future Uncertain

Bloomberg has detailed the course of cryptocurrency’s volatility, trading activity, and correlation with other assets over a period of 16 months. In an article published Wednesday, May 2, they conclude that crypto’s past performances are no guarantee of future ones.Bloomberg begins by noting that Bitcoin (BTC) - and cryptocurrencies in general - have such an extreme volatility that they are not currently useful for payment in stores or salaries. The article notes that the only non-crypto related investments that have shown similar volatility to crypto in this 16 month time period are a South African company facing an accounting scandal, and a Russian bank that received “Russia’s biggest-ever financial bailout.”Reflecting on Bitcoin’s dominance, its trading volume and market capitalization share are both exponentially higher than any other cryptocurrencies’, as opposed to traditionally traded stocks with their relatively even distribution. Bloomberg cites LDJ Capital Founder David Drake as noting this means…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE